Netflix stock explodes after earnings

Netflix just reported second quarter earnings that were a little better than expected and now the stock is soaring.

In the second quarter, earnings per share came in at $0.06 per share. Expectations were for earnings of $0.04 and $0.09 on an adjusted basis.

Revenue totaled $1.64 billion, right in-line with expectations.

Following the report, shares of Netflix were up as much as 11% in after hours trade.

The company reported net subscriber additions of 3.3 million, bringing its total subscriber count to 65.55 million. International additions totaled 2.4 million the quarter, bringing international subscribers to 23.25 million.

US subscriber adds totaled 900,000 in the quarter, bringing this total to 42.3 million.

Free cash flow in the quarter was negative $229 million, more than the negative $163 million the company reported in the first quarter.

In its earnings letter to shareholders, the company said, "As we have previously detailed, our investment in originals is working capital intensive, which results in higher cash spent upfront relative to content amortization, and, we anticipate this trend to continue given our increased investment in originals."

As for the third quarter, the company expects earnings per share of $0.07 on streaming revenue of $1.59 billion (streaming revenue totaled $1.48 billion in the second quarter).

The company also expects to add 3.55 million subscribers in the third quarter.

Netflix shares began trading on a split-adjusted basis on Wednesday, so the stock was around $106 per share in after hours trade. Backing out the 7-for-1 split adjustment, this is a new all-time high for the stock, which has more than doubled in 2015 alone.